Race bike leasing.

I want to own my road bike and ride it into the ground. Same with my gravel bike.

My race bike doesn’t get ridden often and has obsolescence risk. I hate selling used equipment. No one wants to pay what something is worth on a secondary market - maybe ST classified is better for higher end components. Craig’s List is fine for entry level.

It would be cool to lease a high end bike return it after 2 or 3 years to someone who can attest to its condition and sell - like a Pro’s Closet. You know the cost of per season when you sign up for the transaction. This would require a strong secondary market - not sure we have the transaction volume.

Bike loans are common now from LBS. I also saw the option on Premiere Bike for financing. Leasing could be the next thing.

Would probably want to have add-on crash insurance.

I think everything is game (the whole bike, wheels, all the other stuff you list, etc.). The trick is figuring out the logistics and economics. For example, the bike I train on does not have to be the same bike I race on. If I could subscribe to a service that gave me a top-tier race bike that matches my coordinates for the six to eight races I do each year, I might consider that. In a perfect world, those bikes would be waiting for me at each race. But, I could live with the compromise of having it delivered and collected from my home before traveling to the race. Economically, I would be buying about a 8/52nds (15%) share of a 10K bike. It is a more complicated economic model, but figure full depreciation over 3 years and the gross cost is around $500/year. But, you will not cover all weeks in the model, and there are administrative costs. So, ROM is that the subscription might be on the order of $1,500/year. That is still not too shabby for a top-end bike when you need it.

Same for the wetsuit problem. Maybe that is better as a short-term rental product than subscription. I only do 2-3 races/year that are wetsuilt legal (I live in the south). I just bought a very good wetsuit to replace the one I wore out after only like four races. I will probably use it 3 times in 2019. I would much prefer strolling up to race start to receive my wetsuit, and then the stripper could collect it for me at the end of the swim.

I think the market and the model get a little more complicated when we get into the things we use regularly (daily) for a long period of time. Essentially, those devolve down to leases or rentals.

Bike maintenance would be helpful. Race bike leasing would be ideal. My tri bike is only on the trainer or in a race. Would certainly pay to lease a top flight bike in a race instead.

i could imagine this. but, how many races and which? what REALLY would you be willing to do? and spend? for example, let's say that i said:

$1,000 buys you:

- first class race bike. top caliber. top caliber components.
- top caliber wheels.
- internet fitting to dial in your position in the months prior, so that you maximize on race day.
- delivered, waiting, at the race.

it's that much per race.

A) would you spend it?
B) how early are you going to get to the race? if it's shimano synchro electronic, are you going to be comfortable with how it shifts if you're not used to it?

i could see doing this in concert with, say, TBT or similar. i could see a number of ways this might be done. but the capital investment would be big, and there would need to be X number of people who'd want this service.

the upside is that if you use this twice or thrice a year, after 4 years you've "bought" the bike but it won't be worth spit on the secondary market, but, after 4 years you're still racing this year's new bike, if you see what i mean. every race it's current model top end bike.

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Dan Empfield
aka Slowman

see my post just above. how much per race? and for what quality machine?

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Dan Empfield
aka Slowman

I've considered offering such a thing aero testing, but it's location dependent which doesn't work well with subscriptions. It wouldn't be a big money-maker without retail tacked on to it.

I would think bike maintenance would be a no-brainer as long as you could schedule the work in advance and be guaranteed (within reason) same-day service. Seems to me mobile would have this covered. Perhaps it is and I just don't know about it.

You already have race day wheel programs, so I'm not sure if a subscription service would be any better. Bikes would be tough. I can see leasing bikes for a 2 year period with maintenance included, but I don't see how you make a profit with a subscription model.

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Jim Manton / ERO Sports

Dan, one company that's trying this is A-Squared bikes with their "T3" program. They've got packages ranging from $85-$250/mo depending on components/wheel, then you 'upgrade' to a new bike after 18 months. https://a2bikes.com/pages/transition-area

No idea how it's working for them, but they're giving the subscription model a try.

There was a shop in Texas that offered a maintenance subscription, I don't remember the cost and details but I recall quite a few people who did it. It was mostly focused on the MTB and Cross market, the guy the did it sold his shop a few years ago and I think the new owner ended the program.

$1000 per race seems steep but worth considering, as is a multi-year program of $2k or $3k for 2 (3?) races per year.

A couple of things exist already today:

coach subscriptions in a lot of different variants
wheel hire, e.g. Zipp wheels

$1K/race would be on the upper end of what I would consider, but it is in the realm. My current bike is about $6,500 for its new equivalent. But, I got here spending a bunch more than that on the original purchase plus two drivetrain upgrades, two wheels upgrades, and a cockpit upgrade. When it is time to replace it, I would likely spend about $7K in today's dollars to buy its fully-outfitted successor.

I would want to use that future mega bike in Ironman-branded races, USAT AG Nationals, and any other major non-branded races. I do a bunch of local sprints and Olympics, and I could live without the mega bike in those.

So, I would end up spending $3K - $4K/year in an all-inclusive program at $1K/race. That is cheaper than what I would spend on a bike I would own, but it would also be a better bike. However, after 3 years, I would be way in the whole for my likely bike, and about break-even compared to the purchase of a mega bike.

Based on that, I think the cost would need to be around $750/race. If you could keep a bike busy for 20 races/year, that grosses $15K/bike/year. Not too shabby if you can get more than a year out of a bike and keep the other logistics and services costs down.

Ugh - honestly I want less of this in my life rather than more. This goes extra for much of the software - I've saved much money by owning Lightroom rather than renting, and ditto for Office (through work). I still pull out my old, original-run Quake CD from time to time and play it. I liked PeriPedal because I owned it and it just kept working.

That said, the race bike thing could be tempting. The places where it works are where owning the thing is a hassle - I pay for Netflix and Hulu as much to keep the discs out of my home as anything else.

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The point is, ladies and gentleman, that speed, for lack of a better word, is good. Speed is right, Speed works. Speed clarifies, cuts through, and captures the essence of the evolutionary spirit.

I can't see a bike rental working (or at least being profitable).

How many viable weekends per year ? Unless truly global then say 20 ? (Certainly in that order for Tri in mainland Europe - May to Sept really).

And it only 'works' if the bike is guaranteed available for the X, Y and Z weekends I want it. No good if only available for X and Z but not Y. It's not like a car hire where they can give you a bigger auto as a free 'upgrade' when all the mid sizes are gone (yes sir, as a valued customer we've upgraded you from you regular Speed Concept in size Medium, to the latest Shiv or P5X in size XL... )

Space saving ? nope - You still need a TT bike to train on (othwrwise there's no point having a P5X on race day if you've only been training on a regular road bike for the past 5 months).

The car lease/rental market works because there is a healthy 2nd hand market with reasonable re-sale. Dont think there is one in bikes.

The area where I think there would be some benefit maybe is a 'short term lease' of say 1-2 months on 'mortal' TT bikes such as a P2 or P3 - that would allow me to give one a proper go and do a fit etc before buying. And as its a 'stable' design and not trying to be the latest thing every year, it would allow the lower capital cost to be recouped over say 3 or 4 years rather than 1 or 2.

Oh... and wet suit rental.
A suit 20 others have p!$$ed in before you did this season.
Uurrrggģhhhh.
I'm OUT.

This (for me).

It doesn't have to be a top brand bike either.

I'd travel to at least 1 HIM a year if I could tack on $200 to the race fee and have a bike ready for me at the race site.

Equipment that you interface with (on race day) would be a hard sell. It's going to be so personalised that it would be difficult to satisfy enough people to bother running a subscription service. Software can be made generic. The fit of your bike can't (at least not affordably or efficiently). Same for wetsuits, etc. And it would likely lead to endless debates of who caused damage/my chain fell off while I was leading/I got a puncture and it's your fault/etc.

Training equipment (bike trainer, treadmill), maybe. But unless you deliver it to the customer and pick it up when they stop paying, then you've just invented the gym.

Maybe you could sell "service contracts" for a bike like some specialised industries do. One free maintenance a year, plus emergency callouts within 24 hours. Gold contract = all parts and labour. Silver = consumable parts (chain, cables, brake pads...) and labour. Bronze = labour only.

Maybe clothing? small monthly fee, and each month or two you get a new jersey/bibs/tri suit/swimwear sent to your door.

i signed up for a harry's shaving deal. i like it. i like how they do it. it's at the pace they say. so, the clothing thing. socks. i'm always out of athletic socks. cycling socks. interesting.

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Dan Empfield
aka Slowman

I think the issue with higher end things (bikes, wheels, ect) are the fact that the people can easily disappear with the product.

Then what? A long, lengthy fight to get something back, maybe? What if they sell it.

If these are manufacturer direct, maybe they can take the hit, most shops can’t.

Garmin should already be doing this, like Apple phone upgrade plan. Garmins are the Apple of sport. High quality that it retains a good value, but coming out with new items every year that people want

Smart Trainers could too, because like garmins, they usually have to access the internet to be useful. They can then be “bricked” for better term if not paid.

Fit and service, I think are the low hanging fruit here.

A critical distinction, I think, is the subscription model ($x/mo for y mos to get z stuff) vs the 'rental' model that Slowman suggests, i.e. $1000 per race for z stuff. Maybe I sign up for the subscription model and am committed to $200/mo for 18 mos (that is the middle-high choice for the A2 subscription). Then I'm injured and can't race. Or family or work or other unforeseeable events limit the number of races I can do in 18 mos. Would be pretty expensive per race if racing only once or twice per rental period. But you do get to train 365 days/yr in this case on nice hardware, so there is that. And, the counter argument is that you drop $7k on a new bike and get injured/family complications/whatever and sell a couple of years later at 50% discount. That's pretty (financially) ugly, too. I dunno...but I'm happy racing on my few years old QR CD0.1, purchased used for not a lot of $. About all the bike I need...

So then maybe what you're looking at is more of a time share model. A specific bike is available 35-45 weeks out of the year (just to be realistic about it), and you reserve it for specific race dates. Once those are taken, no one else can get that bike. With a subscription model, it's too much of a crap shoot as to whether or not the bike you want is available because only so many bikes can be stocked before the business model no longer works.

With a time share model, I could see this working fairly well. I would say the service would/could ship the bike to your race location with your saddle and bars placed to your fit coordinates. If you use a bike that's easy to assemble, position wouldn't be a worry. If a company gets enough business, I could see them being present at specific events ready to assemble, conduct any unforeseen maintenance, etc. Every two years, new bike.

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Jim Manton / ERO Sports

It’s a little off topic, but what is happening in the ski industry is kind of interesting.

Two big conglomerates/consortiums led by Vail and Alterra (Ikon) have created single price season passes. These are good at all of the resorts in the particular group, either on an unlimited or very flexible basis. I have an Ikon Pass and will ski 20+ days this year, ranging from my local East Coast mountains to a couple trips out West to top notch resorts. Total cost to me was $800 back in May.

Ski companies benefit because although they lose some per day fees, they lock you into doing business with their properties, causing you to rent condos, book lessons, apres ski, etc. at their properties. They also get paid up front, and lose weather as a major variable to the attendance numbers.

Could WTC do something like this? With their growing portfolio of RnR and other non-IM events, could they get a bunch of people to spend $1500 per year, knowing it would get you access to a couple full IMs, a couple 70.3s, and whatever else you want to sprinkle in (a RnR 13.1, a 5150, etc.)?

Sort of like with how Alterra aligns with companies outside their ownership, maybe WTC could partner with some other sprint/Oly producers to help cross-pollinate their races. Call it the $1500 endurance season pass.

Probably not realistic, but just a thought.

Jim - not to you directly but no way bikes work just showing up on race day as rental. Nutrition flat storage garmin mount location... so much customization for each person. Leasing maybe.

Me personally I’ve never been a good sharer. I want to own so maybe I see it differently.

Yeah, I agree. Maybe leasing would be an alternative way to bike ownership, though not sure the secondary market is strong enough. Or, maybe just buy the bike!

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Jim Manton / ERO Sports

Bike fit would be the only one I'd consider out of the stuff you've listed. Although it'd imply that an organization would sell me a subscription with the appropriate level of guaranteeing availability, etc.

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Next races on the schedule: none at the moment